Sabah natural gas reserves are limited
- SOGCE ADMIN
- Jul 7, 2025
- 2 min read
Published on: Monday, July 07, 2025
By: Jonathan Nicholas
Kota Kinabalu: Over-reliance on natural gas is unsustainable for Sabah and may hinder long-term energy security and industrial growth, said Datuk Harun Ismail, Managing Director and Chief Executive Officer of Sabah Oil & Gas Development Corporation (SOGDC).
During his keynote address at the Sabah Oil & Gas Conference and Exhibition (SOGCE) 2025 themed “Fostering Collaboration, Paving Sustainable Opportunities” last Friday, Harun stressed that Sabah’s natural gas reserves are significantly more limited than those of Sarawak, making it a risky foundation for long-term energy planning.
“Sabah currently relies on natural gas for 90 percent of its energy needs. This level of dependency is not conducive to energy security. We need a clear transition plan towards renewable energy,” he said.
He highlighted untapped renewable resources in Sabah – particularly the thermal ocean sector within the blue economy – but noted that these technologies remain expensive and would require substantial government subsidies to make electricity tariffs viable.
“An estimated 2,000 megawatts of potential ocean thermal energy remain unutilised due to high costs.
“Sabah’s hydroelectric potential is also limited, with only about 1000 to 1500 megawatts harvestable, mostly from smaller rivers along the west coast, which lacks significant elevation.
“In Tawau, geothermal energy could provide another 100 to 150 megawatts, offering hope for future energy diversification.
“But the question we must answer now is how do we secure our future energy needs? Research and investment into alternative energy sources must be accelerated.
“Continuing to consume natural gas at this scale will constrain Sabah’s industrial growth and limit opportunities for other sectors within the energy ecosystem,” Harun warned.
He added that the over-concentration of the energy industry around gas has created limited room for the growth of other subsectors in Sabah’s local energy economy.
He said this after underscoring SOGDC’s ongoing efforts to drive sustainable industrial growth through major infrastructure developments, highlighting the progress of the Sipitang Oil & Gas Industrial Park (SOGIP), including the operationalisation of the SOGIP Port under its new subsidiary, SOGIP Port Sdn Bhd.
“The declaration of SOGIP Port limits by the Minister of Works marks a historic milestone in Sabah’s oil and gas journey. SOGDC has officially expanded into the Oil and Gas Services and Equipment (OGSE) sector through its subsidiary companies,” he said.
He also stressed that SOGDC remains deeply committed to human capital development by working closely with institutions like Universiti Malaysia Sabah and Politeknik Kota Kinabalu to equip local talent with the skills required for a rapidly evolving energy sector.
As the Official Strategic Partner of SOGCE 2025, SOGDC reiterated its commitment to sustainable energy development in Sabah not just through physical projects but also by empowering local communities and building future-ready capabilities.
“This partnership reflects our mission to advance the oil, gas, and energy industries not just locally, but at the national and regional levels,” Harun concluded.
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